Hospitals Sue Kaiser Over Emergency Care

Hospitals Sue Kaiser Over Emergency Care
By NICK MCCANN
Courthouse News Service
January 05, 2012

(CN)- Three Los Angeles-area hospitals say Kaiser owes them at least $94 million for refusing to fully cover emergency services for its
members.

Kaiser was legally required to encourage its members to use the hospitals,
but in some cases pressured patients to transfer before their emergency
conditions were stable, the hospitals say in their lawsuit.

"Because Kaiser elected to accept the benefit of the discounts available
under the Multiplan Contracts, Kaiser was required by law and the Multiplan
Contracts to actively encourage Kaiser Members to use the services of
Hospitals, which Kaiser failed and refused to do," the complaint says.

"On the contrary, Kaiser has directed its members to avoid going to
Hospitals, refused to allow its members who received emergency
services at Hospitals to complete their episodes of treatment at
Hospitals, and pressured Hospitals' physicians, patients' families, and
even patients themselves, to transfer patients out of Hospitals for non-
medical reasons before the patients' emergency conditions are
stabilized," the complaint continues.

The hospitals are Centinela Hospital Medical Center, Encino Hospital Medical
Center and San Dimas Community Hospital. They sued for eleven different
causes of action related to Kaiser's alleged breach of contract.

The hospitals are represented by Marcia Augsburger of DLA Piper's
Sacramento off